Along with serving you in the 8th Senate District, I also have the wonderful opportunity to help Wisconsin families in my role as the Chairwoman of the Wisconsin College Savings Program Board. Since the program’s inception in 1999, I have been blessed with helping oversee the growth of Wisconsin’s highly successful and popular EdVest Program.
Recently, the Board made it our goal to expand EdVest participation among moderate and low-income families and those who are not comfortable “playing the market”. Therefore, with the Board’s blessing and leadership, I have recently authored legislation that creates two trusts to segregate bank funds and credit union funds from the other EdVest program assets.
This insured, fixed investment option will be called the “Wisconsin CD Option”. It will cover both the bank and credit union investment choices and will obviously appeal to conservative investors. . The rules and fees for the CD option will be very similar as the other EdVest portfolios, and the bank and credit union products should look as identical as possible to investors.
The new option would feature Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) insurance coverage for EdVest investors. It would most likely become available later this summer with materials and information available in Wisconsin banks and credit unions.
The idea is to allow EdVest investors to buy interests in the new trust fund, which would then hold the contributions to the various investments offered by the program. Investors would not directly buy mutual fund shares, or the CDs (Certificates of Deposit) themselves.
I expect this legislation will become law, so if you plan to our already are saving for your child’s college education, I invite you to learn more about EdVest and the new CD option. Remember, Wisconsin EdVest investors may deduct up to $3,000 on their annual income tax returns.
To provide some feedback on this column, contact me at (800) 863-1113, or sen.darling@legis.wi.gov.
